FOREX REPORT
The forward dollar remained strong in a volatile market with the six month premium closing at 6.05 per cent and the one year at 5.8 per cent. Spot trading, however, remained dull and the rupee gained slightly to close at 35.705-715 against the dollar.
Spot rupee opened at 35.715-725. With no major player in the market, it appreciated during the day to close levels. Cash-tom and tom-spot were .25/.75 paise each and cash-spot was .5/1.5 paise. The forward market was volatile as payers and receivers entered the market in turns. July premiums opened at 190-193 paise, touched an intra-day high of 205-210 paise, and an intra-day low of 187-190 paise, before closing at 193-196 paise. Sources say the volatility was linked to developments in the offshore market which panicked following RBI statement that the rupee was overvalued. Some Indian corporates reportedly bought forward domestically at a premium of almost six per cent and sold it overseas at a premium of 16 per cent. Besides corporates, there was a lot of inter-bank interest also.
Monthly premiums in paise were 3-6 for August, 16-19 for September, 33-36 for October, 50-53 for November, 70-73 for December, 91-94 for January, 107-110 for February, 125-128 for March, 140-147 for April, 161-164 for May, 176-179 for June, and 195-196 for July. In the crosses, the rupee closed at 57.34 against the pound, 19.06 against the mark, and 30.15 per 100 yen.
